mgt411 gdb solution:

when the rate of interest is low , demand will move from savings, to investment and consumption.this will result in the inflation so solution by Admin Binish:

Money supply Increase

low interest rates and the associated increase in themoney supply in the long run, the inflation rate is essentially dependent on the growth rate of money supply refrence :chpter #32

refrence for the 2nd comment by Admin Binish:there is positive and direct relation ship between the inflation and money supply coz more money supplye results in the inflation inflation is an increase in the money supply, rising prices are merely consequences and this semantic difference is important in defining inflationsolution by Admin Binish:

Inflation Increase

High interest rates and slow growth of the money supply are the traditional ways through which central banks fight or prevent inflation Refrence for the BOP:BOP A record of all transactions made between one particular country and all other countries during a specified period of time. So this directly don’t have such clear relation with this but it is 50 50 chance.it is conditional and periodic change . Chapter no 31 to 33 Solution by Admin Binish:

Balance of Payment (BOP)May increase or decrease

Reference by Admin Binish for the 4rth comment:Highter the inflation is bad for the growth means highter inflation the lower will be the reall growth.CHAPTER NO 31 POINT NO 5 PAGE NO 96Real GrowthDecrease